Skip to main content

tv   Closing Bell  CNBC  August 23, 2013 3:00pm-4:01pm EDT

3:00 pm
we have breaking news. everything is up. have a great weekend! we'll see you everybody on monday! >> "closing bell" is next. yes, and we do welcome you to "closing bell" a little early. i'm bill griffeth at cnbc world headquarters. >> and i'm kelly evans down here at the new york stock exchange in today for maria bartiromo. we want to get right to it. steve liesman out in jackson hole, wyoming, and he brings us breaking news. steve? >> reporter: thank you, kelly. i'm met manager director christine lagarde, worrying about spillovers. she said the exit from the policies present, quote, serious risk to those countries that do not have the policies, principally those emerging market countries. and really what she's talking about the current fluctuations we've seen in the last several weeks when it comes to what's been happening with market expectations for the federal reserve and other exits. she's saying some currency market intervention could help for some of the countries when
3:01 pm
they try to deal with the exit strategies of the unconventional policies of the developed nations. she's urging central banks to manage the exit carefully, and she's saying the country should work together in managing this exit. government, she said, should not waste the breathing spaces provided by central banks through the unconventional policies, and she's telling them to get on with the economic and financial reforms that they need to do. and she singles out europe, saying they need to unclog the financial planning and get credit flowing. the imf, she say, believes the impact of the policies have generally been positive, and said the exit should depend on the pace of recovery, and that she does single out europe and japan, again, saying they have more to gain unconventional monetary policy. and if i could just add she does not mention the u.s., it suggests that maybe she thinks the u.s. exit from unconventional policies earlier exit is warranted for the united states, whereas she's saying europe and japan do have more time. we'll have an exclusive
3:02 pm
interview -- we'll have an interview with christine later today, coming up at 4:45 your time. back to you. >> we look forward to that, steve. thank you very much. from jackson hole, wyoming. the annual fed fest that's gone o there. thank you very much. 24 hours ago, we were waiting for the nasdaq to open back up after a three-hour shutdown, and today, the fallout continues. but not for the overall stock market. the nasdaq is positive today, up .4%. bill, yesterday it put in a performance of 1% despite being open only 20 minutes before the close. >> lately, we've been trading more on fundamentals, and one of the fundamentals that came out today, as you know, that was home sales figures were not nearly what was expected. down 13%. that brought the market down. and, in fact, the bond market responded to that, as well. so we'll be looking at that very carefully over the next hour as we head toward the close, kelly. also today, maria's exclusive and revealing interview with walmart ceo mike duke. she spent yesterday with him in orlando, florida.
3:03 pm
you saw some of that coverage on this program. of course, the nasdaq story drove our show yesterday. so today, you will see her conversation with mike duke, and you do not want to miss this. they talked the consumer, the economy, the impact of the new healthcare law, and, of course, the mexico bribery scandal. just some of the ground covered with the ceo of the world's number-one retailer. so you want to stay tuned for that. >> yeah, a huge interview. also, sports superstars at the same time big into business, two of them will be joining us here on the "closing bell" today. one, former nba great shaquille o'neal. and, also, phil mickelson, who is currently the number-two ranked golfer in the world behind tiger woods. personally looking forward to those interviews, bill. >> me, too. can't wait. yes, it's all the "closing bell," so that means we get to do the marks as well. here's what we've been doing. had a sell-off on the open this morning. some of that, the housing data. but we've crawled back today, a gain of 22 points for the industrial average. still below 15,000 at 14,9876.
3:04 pm
nasdaq has been positive today. microsoft, one of the big gar s garegaren garens -- gainers, the resignation announcement we'll get to. 14 points on nasdaq at 3,653. and the s&p 500 index is showing a gain of almost 4 points right now at 1,660. >> that's right. now, it was a wild ride at the nasdaq yesterday. we're still searching for more answers about just what happened and what the long-term impact will be. bertha coombs is over there now with the very latest. hey, bertha. >> reporter: hey, kelly. at least today it's been smooth sailing, no reports of any sort of outages. and the nasdaq stock itself today rebounding here as we're going into the close here in this final hour, actually at the highs of the session. bob this morning here at the nasdaq defending the nasdaq's reaction to the shutdown, the flash-freeze his folks are calling it, yesterday, saying they did the best they could and they wanted to first and foremost get the markets up. now, this afternoon, the nasdaq
3:05 pm
has offered a few more details in a postmortem it sent out to traders, essentially saying they believe the issue evolved from an exchange participant that had problems, and that contributed to the data glitch. the quote feed disruption, they say, was due to a software issue. it did not disrupt the trading feed itself, but it disrupt the ability to see pricing and quotes. no signs of hacking, they say, according to that -- into that quote feed. and there was no sign of unusual burst of trading or of quotation volume. some folks had talked about whether some sort of high-frequency trading may have triggered that cascade that forced the system to be closed down. nasdaq has been in touch with the s.e.c. on both says. no doubt, kelly, the s.e.c. is going to demand more information from all of the participants with regard to just what happened with the timeline. we still don't know exactly what caused that software glitch, and where it emanated and whether in
3:06 pm
trying to fix it that's what actually caused the whole system to go down. >> yeah, lots of questions that still need to be answered. thank you very much. let's talk about today and the week we've had here on the "closing bell exchange." rob is here, joe, and gordon. gordon, i'm going to start with you. a crazy week. are we trading more on fundamentals? i was struck by the rise in bond prices when that housing number came out this morning. that felt more like a normal reaction for the markets when that report came out. >> yeah, and it was nice to see the markets react so aggressively to real data as opposed to the way it's been trading down here this week, bill, where it seems to be directless, the vix is down, the volume is down. a couple of things you're looking at, weakness in dollar, and gold prices. a lot of things coming into focus here, and you get comments about how they're going to handle tapering. so an interesting market here as
3:07 pm
we're trying to figure out what the proper level is. as we get into next week. >> yeah. >> i think, bill, the other important thing, as you look forward, is you know that they have to do some sort of taper g tapering. so a lot of what's happening now is psychological. you mix in some forward planning for some of the events coming up in the fall, and, you know, we could see some -- a little more downside here before they decide to retracement here. it's feeling heavy. i'm not seeing the same kind of aggressiveness from buyers looking to get in on the dip. it looks like we'll continue this trend. >> and we're seeing some action in gold. chris, are we breaking out at the levels of 2%, just shy of 1,400? actually, if we have joe, joe, do you want to take that one? >> could you repeat the question? >> sure, what's happening with gold? is this the beginning of a breakout here? >> you know, as i take a look at what's happened with gold prices over the past few years, i just -- i have a hard time pointing to the price and saying this is all being driven by fundamentals. i think the price that we've seen, the movement in price we've seen over the course of this year could best be
3:08 pm
explained by at the margin tighter fed policy and as a result the strengthening dollar. what happens to gold in the short term, i tend to say it has to do with speculation, on the upside and downside. >> but the dollar is going down, joe. >> yeah, well, again -- again, i think it has to do with speculation. it's not all being driven by fundamentals. i think there are reasons to own gold in a portfolio. it just makes me nervous when i hear investors say they want to take larger and larger positions in gold due to fundamental reasons, because as you just pointed out, the fundamentals do break down. >> yeah. rob morgan, do you like the stock market? are you ready to buy a dip? as gordon was saying, we've gotten away from the mentality of buying the dip that was so prevalent the first half of the year. >> bill, i still like stocks. i don't think they're expensive here. i think earnings estimates continue to go up. technically, the market looks sound. and, hey, the retail investor is only beginning to get back into the market after being out of it for five years. that's probably the most important fact of all.
3:09 pm
so i would continue to buy on the dips here. and i do -- i would overweight stocks in a portfolio. >> rob, if the retail guy is getting involved, who's getting out of this market, because last week saw the biggest equity outflows in five years according to the guys at bamel. >> yeah. oh, yeah. obviously, kelly, we had some institutional movement out of the market. and i'm not saying that the retail investor's getting back in a big way. they're just -- they're just really starting to dip their toes back into the water. >> gordon, how much are you guys on the floor keeping an eye on the bond market? and i look at that 10-year yield. every day, we talk with rick santelli about this march back to 3%. is there a level that it will get to that could put a crimp on the stock market style, do you think? >> well, i think what we're looking at now more than just the yield on the bond -- which, of course, is important, it indicates stable -- you're looking at a lot of different things. weakness in retail has a lot of
3:10 pm
transiential things. so the thing we're wondering about is will bonds and stocks go lockstep or will they deverge? i think you'll see both of them continue to come in a little bit and they're going to start traveling in the same direction, which is unique from what we have been seeing lately. >> joe, give us the sense next week of what you think the most important things are for people to watch here. if they're trying to figure out if equities have further to go in the direction or if now is the time to rotate into bonds? >> i would definitely believe there's still a lit more upside here in the equity markets. of course, if you look at the economic calendar, it's pretty light. it was light this week, and i think it will be light next week, as well. i think for most investors, it's try to be wrap their minds around what is happening with the fed. i suspect you'll continue to hear more debates on whether the fed is justifying tapering beginning this september, or whether they shouldn't. at the same time, of course,
3:11 pm
you've got valuations for u.s. equities,ry hovering near the 10-year averages, as a result of that many investors are just questioning if there's still more room to run. of course, i continue to believe there is more room to run. >> anybody buying facebook now that it's above $40? bob, joe, anybody? gordon? >> somebody's buying it, bill. >> yeah. >> obviously. facebook at 40. who'd thunk it. thank you, guys. appreciate it. >> big day. thank you. we have over 45 minutes left to g bill, again, a different environment today than what we saw yesterday, although you have to say that the action in equities is somewhat similar. so we saw a rebound yesterday carrying over today despite the really disappointing report on home sales. >> exactly. after the break, don't miss maria's exclusive with the walmart, mike duke, and even though it's august, walmart must really be banking on the upcoming holiday shopping season. >> now, wait a second. we're headed to the set right now, and i see christmas trees. >> that's right. >> we're not really going to talk about back-to-school and the holidays, are we?
3:12 pm
>> this is going to be holidays. we'd love to talk about holidays. >> all right. >> i thought the holiday season didn't exist anymore. we'll have plenty more on that. and, of course, the latest problems at the nasdaq, and the question is whether or not the problems are over, and, also, who, if anyone, will be on the line for what happened. we'll be right back. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading.
3:13 pm
their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." [ agent smith ] i've found software that intrigues me.
3:14 pm
it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]
3:15 pm
another wild week on wall street. josh lipton covering it all for us in the market action. where do we stand here with less than an hour to go? >> yeah, well, bill, it's a friday summer session. there have been interesting moves in the major averages. pull up the dow intraday. you're up for a second straight day, but you're down for the third straight week. it's been a narrow range on
3:16 pm
tight volume. intraday, you can see there -- i know you guys have been talking about this -- there's the drop on the disappointing new home sales data. also, look at the benchmark 10-year. look at 9 yield on the 10-year, again, falling on the worst-than-expected new home sales report. new look at the equity market, no surprise. the pain today in those homebuilders, right? the itb, the home construction etf. you get a two-year chart, you would see a bottom in 2011. you hit a peak in may. you're down about 19%, 20% since then. look at the home builds today, individual names, ryl, kbh, dhi, all in the red. what's working today, some of the rate-sensitive sectors, reits, utilities, and s&p telecom, you can see it's all in the green. kelly, back to you. >> josh, thank you very much, sir. over to you, bill. >> thank you, kelly. walmart making headlines this month when it released earnings and warned in its outlook on the consumer. now, many on wall street pointed to that warning as one reason for the market's pullback.
3:17 pm
well, maria sat down with the ceo, didn't she? >> that's right. she sat down with mike duke asking him about the outlook for the economy and the consumer. as you're about to see, even though it's august, the giant retailer seems to already be banking quite a bit on the holiday shopping season. >> in your most recent earnings release, you said that things were challenging. can you expand on that a bit? what are you seeing? >> sure, the customer clearly is under a lot of pressure. i think the economic pressure from the payroll tax -- you know, walmart customer, for example, even -- say a typical customer might be in the $40,000 to $50,000 income range for a person. that may be $40 per pay -- biweekly paycheck that they're paying in additional tax that they can't spend. i think the concern about fuel prices, about jobs, employment, all of this puts a little bit after cloud on the consumer in the united states right now. what i find, though, is the customer's so smart.
3:18 pm
they are using information more than ever, and they're adapting -- they're finding ways to get through, even with this pressure on them. and obviously, that's where walmart comes in to play. >> let me ask you this, mike. broadly speaking, why has it been so difficult to move the needle in terms of job creation, in terms of economic growth? >> i do think here in the united states if we focus there all of us need to work together. business, government, nongovernment, to start to create a growth story. and we in business can do it, but also we do need government, of course, taking the right steps in washington and across the nation to start to move the momentum. i think of it as the momentum of a flywheel, and we need to get this moving, and it can start to feed on itself. and some of this would revolve around our tax policies and where we really need comprehensive tax reform. we need other steps to start to create a growth story here in
3:19 pm
the united states, but business can be a part of that. investing in the united states, creating jobs, because that can start the cycle, also. >> what are you expecting from back to school and from the holidays? here we are looking at all of the products for the holidays. do you have an anticipation at this point? >> i do anticipate that customers are smart, and they have more information than they've ever had. they are looking for value, and they look for quality. so i do think they'll continue to be pressured. i think the overall consumer spending in the united states, and frankly around the world, will be under pressure through the back-to-school and through the holiday season. but i think where customer dissee value and quality and their needs be met, then those retailer also do really well. that's why, actually, i feel really positive after this walmart managers meet about how walmart is so positioned. our business model of everyday low price is exactly what customers will be looking for this holiday season. >> what about competition? i mean, in an environment where
3:20 pm
you are seeing people stressed and stretched, you know, with the payroll tax increase, are they going -- even trying to go lower? in other words, the dollar stores. are you seeing the dollar stores take market share at this point because of this stress? >> well, i'm out in competitors every week. when i visit our stores, wherever i'm at and across the united states, i drop in and visit competitors, so i have great respect for all competitors. and i will tell you that i think there's going to be more pressure on all forms of retailing, but also think that that's where walmart comes into play. i can't say that because we are gaining market share in those categories that we can evaluate and get real true metrics around market share, we can see that we continue to gain market share and feel good about that. so i'm not one to be -- know where the market share shifts are taking place. i can know our own information and feel good about where we're headed and those categories that we can identify.
3:21 pm
>> so talk to us about your investing and how you want to allocate capital going forward. you made a number of investments in the social media, the cloud. chinese commerce site. tell me, is this going to be the norm going forward? are there more acquisitions to be done in terms of technology and international? >> we are clearly going to be investing in technology. no doubt about it. now, whether it's acquisitions or our oh own capabilities, i spent monday and tuesday in our office in san bernardino, california, and we have acquired talent, the best talent in the world, the smartest in silicon valley, that i continue to be enthused. so we will invest in different ways in the area of technology. and at the same time, we're going to continue to invest in stores. we think the overlap -- having 11,000 retail stores around the world and the world's best technology -- we think produces the world's best way to serve consumers in every market, so
3:22 pm
we're going to continue to invest in both in order to serve customers with this overlap of technology and stores. >> you know, it's interesting that you mentioned -- first of all, will you take people from what about the talent there? >> well, we have great respect for all competitors, including amazon and other competitors. and frankly, a lot of -- we are really having an amazingly good time of recruiting talent to come to walmart. i think, you know, it's interesting, we are a company with a purpose. and the mission, the things that we work on, to help people live a better life, the big initiatives about sustainability and about veterans and other things that walmart is involved in. i find this is the best time in my history with walmart in terms of recruiting talent, recruiting senior executives, down to recruiting all of the associates that want to be a part of the opportunity to grow themselves and be a part of the walmart story. >> speaking of employees, the
3:23 pm
minimum wage. a lot of people expecting it to go up again. what are you expecting? >> it's hard to say what i'm expecting. i think there'll be a lot of discussion. there should be. i think there should be even more discussion in the united states about the middle class. you know, we've got a middle america that we really need to develop, and that's where a lot of jobs like manufacturing and others can come into play that we're very involved in. but i also think, though, that america needs places for everyone to start. and sometimes the opportunity from the starting role on to grow and develop, i'm just extremely proud of the fact that 75% of u.s. management started with walmart as hourly associates. and this creation of opportunity, it's a great story of america, it's a great story of walmart. so whatever we do, we sure don't want to take away from the opportunity to get started, and the opportunity to grow and be a
3:24 pm
part of personal growth as well as the growth of our business and growth of america. >> lots of great stuff there. stick around. part two of maria's exclusive interview with mike duke is coming up. she asks him some pretty direct questions, especially about the company's bribery charges in mexico. >> are heads going to roll? is anybody going to get fired over this? >> oh. you'll have to wait to hear -- i wanted to hear the answer to that question. we'll have to wait. >> that's what's caused a tease, bill. >> that would be. you just teased me, kelly. >> that's all coming up. a lot of folks are waiting on those answers. and we've got a little bit more -- can i talk today -- than half an hour to go, bill, before the closing bell. the dow is adding about 26 points. the s&p 500, the nasdaq, as well, posting gains here. in fact, the nasdaq is outperforming, bill. >> as you pointed out, gold is much higher today. we've had a flight to the bond market. the 10-year yield is down 10 basis points today. so we'll keep an eye on that. >> that's right. >> are world markets worried
3:25 pm
about what happened with the nasdaq freeze? our steve liesman sits down with christine laguarde coming up. kelly? and we'll talk about michael ballmer stepping down. >> windows, windows, windows! >> yes. he was a man of passion, wasn't he? he always has been, always will be. the stock is up a whopping 7% today, and he's got 330 million shares, so i guess he would be passionate again. by far, the best performing dow component. the impending exit may be why. we'll have more on that story coming up on the "closing bell." stay tuned. ity's guaranteed one-second trade execution, we route your order to up to 75 market centers la guard.
3:26 pm
. maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. in a we believe outshining the competition tomorrow requires challenging your business inside and out today.
3:27 pm
at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
3:28 pm
so steve ballmer announces his retirement plan and the stock goes wild. jon fortt is in san jose, california, with the latest. jon? >> reporter: bill, yeah, the stock's up more than 7% right now. a hopeful cheer from investors who watch microsoft missed boat with huge categories like smartphones and tablets. microsoft did have successes. the xbox console came into its own during ballmer's tenure. the server and tools business became a consistent and profitable grower. and analysts tell me its latest cloud effort is establishing itself as a number two behind
3:29 pm
amazon. it seems this isn't the way ballmer planned to exit, though. he told people at microsoft he planned to stay until around the time his youngest son finishes high school. that's about three years from now. >> all ceos have the same job. i don't have a different economics situation to deal with than the guys who run our competitors. so in a sense, you could say whatever happens to the economy happens. we've got to win with great product, great brand, great innovation. >> reporter: you could argue he hasn't always done that. in a statement today, he said the company needs a new leader who can be there for the duration of its current transition from a software company to a devices and services company. so who will get that job? anyone's guess. internal candidates could include engineering head meyer son and lu. external choices, make somebody like ex-apple executive forestall other, former microsoft executives, ozzie, elop. who would you pick? >> a lot of people did leave.
3:30 pm
maybe one of them would want to come back, one of the top executives. thank you, jon. with the shares up big today, is it too late to get in to microsoft, or is the run higher just beginning? let's talk numbers, on mr. softy, as they call it, the technical side, enis and john stevenson. guys, good to see you. enis, famously dead money for a long time. it's perked up a bit lately. do you like the chart? >> not really. and if we look in the short term, we can see that microsoft has had some major gaps. the one-year chart shows that the gap after earnings is a massive gap, down almost 12% from 35, 40ish down to the 32 level. in fact, since then, the gap on the way up today wasn't able to fill the 35, 40 level. that will be resistance going forward no matter what happens for the ceo search in the short term. and then supporters around the 32 level, the gap that we're seeing today. so i expect it to be
3:31 pm
range-bound. i don't really see it as a good entry here given the upsid resistance. >> john, there would be those who argue that fundamentally there have been gaps at microsoft, right? >> there's been nothing but one gap since ballmer took over. the market cap is in half over the time that he's been ceo. there is absolutely no catalyst whatsoever for this name. their transition to -- to services and devices is really at a mission that their business packaged software isn't working and it's unlikely they'll be competitive against the players in mobile and services like google and amazon that are really eating their lunch. when you look at devices, their tablet really hasn't gotten much traction -- >> why do you think it is up 7% today? >> i think because steve himself has become a lightning rod for investor criticism about the deteriorating margins of windows 8, the sluggish performance of office, which is really 65% of the business. so i think just his exiting is very positive for the business. and it's a great one-day trade. but the longer-term trend is
3:32 pm
lower. >> enis, you don't think this is a game changer, a launchpad? >> no, the stock is cheap, it's 13 times and it pays a 3% dividend, now cash on the balance sheet, but growth prospects are poor. the device aspect has not been a success story for microsoft. it's difficult turning the "titanic" on a dime. >> all right. some skeptics on microsoft still. thanks guys. >> thank you, bill. speaking of skeptics, a lot of people are taking a second look at the housing market. new home sales took a big plunge today. we have the figures from d.c. hey, hampton. >> reporter: housing is one of the key data points the fed is watching to figure out the timetable for tapering. today, we had a big setback. new home sales down 13.4% in july. seasonally adjusted rate is 394,000, according to the housing -- the commerce department, if you will. the lowest pace in nine months, and down to 455,000 in june, a downward revision from 497,000
3:33 pm
previously reported. the primary catalyst -- higher mortgage rates. this week es 4.58% is the average on a 30-year fixed rate. that's according to freddie mac. it's up a full percentage point in may. the impact of those higher mortgage rates really shows up quickly in the new home market, because those july sales figures represent signed contracts, not completed sales. >> there was a pause in consumers buying homes. i don't think it's a stoppage. i don't think it's a reversal of the trend we've been seeing. but i think it was a, wait a minute, let's see where rates are finally headed before we sign that contract. >> now, on wednesday, we saw existing home sales spike upward by 6.5% to a four-year high, but those sales are based on completed sales, where those lower rates were locked in earlier. even with the july setback in new home sales, they're up 7% over the last 12 months, but builders are also telling us
3:34 pm
housing starts on single-family homes last month were the lowest in the past eight months. back to you guys. >> all right, hampton, thank you very much. again, though, markets have generally taken this one in stride, bill. as you mentioned earlier. there was a big move in the 10-year, but stocks up because of that, holding up okay. the 10-year rate move down, we're seeing some floor under the stocks, 36 points. the nasdaq outperforming, up about 16 and a lot of that has to do with shares of microsoft and even facebook, which cracked 40 today. >> riechght. amazingly. after nasdaq's breakdown yesterday, is its ceo's job in jeopardy? with any new company going public, with, say, twitter, list there without big changes? we'll look that the next. then, have we got a lineup for you after the bell. those two guys, shaquille o'neal and phil mickelson, they're both here, very big into the business world. you won't want to miss what they're talking about when we come back. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550
3:35 pm
then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550
3:36 pm
online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550
3:37 pm
3:38 pm
well, with yesterday's nasdaq nightmare, the battle for the exchange will win the righting may be tilting toward the new york stock exchange. julia boorstin following that story. julia, in the great unmentioned, or unnamed, we should say, is twitter. >> that's absolutely right, kelly. the big question now is which exchange, high profile internet and tech companies will pick in the next year. twitter, as you mentioned, storage companies box and drop box, big data cruncher palin tear technologies, as well as car technology uber are expected to file for ipos. so will they flock to the nasdaq with tech giants google, apple, facebook, or will the nasdaq snafus send them to rival new york stock exchange? >> the nasdaq was the -- sort of the home and the haven for many tech offerings, but now you look at post-facebook period, the nyse is gaining the bragging rights over its uptown competitor. >> since facebook may 2012 ipo,
3:39 pm
the new york stock exchange has been gaining share. taking 21 tech companies public, raising $3.35 billion. that's more than twice the $1.35 billion that the nasdaq raised for the 15 tech companies it's taken public since then. this according to s&p capital iq. some of the tech businesses that have chosen the new york stock exchange since nasdaq bumbled facebook's debut are trulia, workday and evertech, both of which raised over $500 million. now we are waiting for the next round of s-1 filings with the s.e.c. we'll have to see which they pick, and especially at that high-profile twitter filing. bill? >> yeah, you wonder if they're scratching one exchange out and adding another one on that s-1 filing at some point. >> yeah. and, bill, we asked twitter and twitter said it had no comment on this matter. >> what a surprise. thanks, julia. see you later. meanwhile, another angle to the story is the criticism over bob grivle's leadership at the nasdaq lately. this morning, he told our andrew
3:40 pm
ross sorkin on "squawk box" he does not think he had a responsibility to communicate to the retail investor via the media during the crisis yesterday, and that hasn't been going down well, surprisingly. sorkin then asked him this. >> is your job on the line in all of this? >> we stand by our performance, again, over an extended period of time. you know, we're open for business in the u.s., around the world. we operate 70 markets around the planet. and our track record is superb. it's not perfect. we want to get there. we want to aspire to that, we're working hard to do that. >> well, let's zero in on how they have handled this. we have bill conlynn here. thank you very much for your time. david, first to you, is his job safe here? >> you have to be on the inside to know where the weaknesses exist. somebody has to actually leave nasdaq and say, "by the way, this happened, that happened, he
3:41 pm
didn't cake tear of that." i don't think at this particular point. >> the circumstances alone of what happened yesterday, how the nasdaq dealt with it, the information we did or didn't receive, isn't enough in your view to require for him or someone to take the fall? >> i don't think that there's going to be one specific person that's going to take the fall. i think the exchange has to really, as they say, man up in some cases and just say we didn't get the job done. and it's a technological issue, nothing more. >> bill, what do you think about that? his argument is, i was busy trying to solve the problem. there was no need for me to be out front trying to be a p.r. person in this case. we needed to solve the issue first. do you agree with him? >> well, yeah, i do agree with that, but i also think when it comes to trading equities, getting the word out to all of the buyers and sellers out there that are depending on your systems would be paramount. you know, you always say, if you have some bad news in a shop, share it. don't do it alone. i think to that extent, you know, fought getting the word out was probably not the best thing.
3:42 pm
but i agree with robert. you can't hang all of the technology issues that happened at every firm on a guy that runs the firm. so it's a big issue, and i think we're going to continue to see more technology problems. >> bill, while nasdaq clearly had a problem here, you're saying it's a broader problem, and, frankly, we've reach add point, and this is your first time -- you're joining us -- it's almost with this message that technology is destroying the market. is that what you intend to say? >> no, i think -- you know, everything we do on wall street is about making things fair and equitable for buyers and sellers. so we had a market that everyone could go. you had the new york stock exchange and you had nasdaq. and now that's fragmented. and all of those pieces are supposed to be doing things that make it good for the individual investor, and for institutions. and there's all this stuff about
3:43 pm
speed. and if you want to invest in corporate america and buy a tesla or buy a ford, and you're buying millions of shares like the institutions do, the speed issue is only going to create more and more problems, because everyone has to report quickly, everyone has to quote quickly, and the quotes have to be matched up and offer them out to the marketplace at the exact same time. >> right. >> i think it's going to keep going. >> speed is overblown. david, let me ask you on your area of expertise. if i'm a twitter, another company that could potentially be in the nasdaq ipo pipeline, am i rethinking that right now? do you think their pipeline will diminish because of this? >> well, i think management has to certainly think about this. they have to talk about it, and they have to process it to whatever end. but i don't believe that what happened yesterday is going to be an indication that the company should automatically jump to the new york stock exchange. there is this god ole boys' club that exists with anything tech, and they just want to feel like they're in the same community.
3:44 pm
so nasdaq's going to be around for a while. >> bill, just a quick one, because the "journal" is reporting that back edge may be in a tie-up here. is this problem going to take care of itself? is consolidation the inevitable outcome of the fragmentation of markets, the pendulum swinging one way, but is it now swinging back? >> i would hope so. i'd like to get if back to one market, all participants, sellers meet buyers. and that's what fair and equitable is all about. the minute you have high-frequency trading and c co-locating, i don't think that's right. >> isn't there an argument, david, i know we have to leave it, isn't there a case we made back when the new york stock exchange, whom ever had a monopoly, the consumer was -- the retail buyer was paying the price for that, that there are a lot of people, we don't want to go back to that old days in that regard. are they right? >> i think they don't want to go back to those days because the competition is out there, they at least made it attractive for people to make a market, that
3:45 pm
spread was a very valuable profit center for anybody that was active in the market. we're not going to see it again. >> all right. thank you for your views. >> thanks, guys. a couple of minutes to go before the closing bell. we're up about 37 points. >> yeah, we'll be back with the market experts on how the week will end. don't miss more of maria's rare enter view with mike duke. the exclusive part of that when "closing bell" returns. plus, christmas trees. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.
3:46 pm
trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment,
3:47 pm
axiron. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together.
3:48 pm
welcome back. scott cohn has been doing some digging into what kept the nasdaq flat-lining three hours yesterday. he joins us with the results. >> the nasdaq told us. it's a conductivity problem. simple, right? >> thanks, scott. >> and the ceo did say on cnbc this morning that they had it figured out very quickly. our job was solving the problem in the first half our, which we did, and coordinating with other people impacted to make sure we come back in a orderly and fairway. >> so they pinpointed the issue
3:49 pm
in half an hour. so why did it take another 2 1/2 hours-plus to get the market reopened? well, he said all of the different market player has to coordinate. and as he said, ensure an orderly open. how hard request that be? the exchange is open every day, don't they? the s.e.c. has proposed in this stack of regulations, for just this type of situation, that the standards should be a resumption of trading two hours following a wide-scale disruption. not three. but the exchanges, including nasdaq, point to hurricane sandy where the exchanges were unscathed, but it was unsafe for many workers to get to their posts. there's a reason a hard-and-fast standard is not the way to go. they want the disruptions evaluated on a kiss-by-case basis. the s.e.c. proposal, known as scei, has lengthy provisions on communicating information about the outages to the s.e.c. and the public. guess what? the exchange has pushed back on
3:50 pm
that one, as well. >> what a surprise. >> they said they get so inundated with requests they have to be careful of what they publish. i guess that's what we found out yesterday. >> exactly. that's the executive summary version there. >> this is the proposed -- >> that's how it works. thank you, scott, very much. kelly? >> all right, bill, bill and scott, thank you. we're taking a look at markets which are rallying here into the close. and this is a pattern that we're familiar with before the weakness that we saw -- or at least started to see since that august 2nd top, bill. so again, as we head into the weekend here, stocks are trying to crawl back. >> yeah. they've finally found a dip they could buy. after the bell, more of maria's exclusive with mike duke. she asks him some pretty direct questions about the mexico bribery allegations coming up. stay tuned. ♪
3:51 pm
make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you start using active trader pro today. we provide the exact individualization that your body needs. this labor day, don't invest in a mattress until you visit a sleep number store. once you experience it, there's no going back. oh, yeah! at our biggest sale of the year, every bed is on sale. queen mattresses now start at just $599. and save an incredible 40% on our limited edition memory foam mattress sets. only at a sleep number store. sleep number. comfort individualized. [ male announcer ] come to the golden opportunity sales event
3:52 pm
to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection.
3:53 pm
welcome back. we're in the final minutes of this trading session. frankly, a week, bill, where we've had a ton of news and a lot of events to digest, including what happened yesterday. >> yeah, let's talk about it. i have stephanie link here from the street, and you have david from morgan stanley wealth management. so we'll talk amongst ourselves here and see if we can make sense of this. we had a slight change of leadership in the markets this week, and, as i said before, we may have found a little bip we could buy here. >> i think we're in a transition
3:54 pm
here in the u.s., because we are digesting higher interest rates, very mixed macro data. very mixed at best. >> right. >> and we're waiting for the fed. so next data point, september 6th, that's the nonfarm payroll numbers, right? that will be the big one. we'll slosh around. you buy some of the dips. we like aerospace. we like auto. i also like international. i think the data this week of all of the good stuff that came out this week, china data, europe data. >> now, look, david darce, you said the same thing, china, europe, you're buying. citigroup saying the second half of the year, a tougher slog for markets. why are they wrong? >> we think the underlying strength of the economy, europe, china, and in the united states, you've got the new jobless claims. we're expecting a week from friday, next friday, a week -- the first week of september, 190,000 jobs, unemployment rate to drop to 7.3%. >> okay. >> so there's your jobs. you have the lead economic
3:55 pm
indicators. kelly, they were up .6%. you had the existing home sales, a three-year high. you have copper up 9% showing a better tone to the chinese demand. and you have the -- you have the new jobless claims, as i mentioned before -- >> already hitting lows. >> they're at a three-year low. >> i think it's a five-year low, you're right, positive signs there. bill, this will be the debate people are having all weekend. >> it is. >> buy stocks on this dip, kelly. buy stocks, bill. buy stocks on the dip. >> i got the message there. thank you, both. we have to go. we have breaking news we'll work on in a minute. in the meantime, kelly, we'll be back with the closing countdown. >> and part of two maria's interview with walmart ceo mike duke. the question is whether he will follow steve ballmer's lead. listen. >> will you announce your retirement this year? are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server.
3:56 pm
one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
3:57 pm
[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪
3:58 pm
[ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. two minutes left. what a week. let me show you the dow chart for the last five days. as i said, we may have found our dip that we were looking for. this is the intraday. i'm going to show you a dow chart that goes over the last five trading days, even though i'm walking over here to look at the intraday of the dow and then of the s&p and the nasdaq. okay. i guess we're not going to look at those charts. so allen valdez, have we started a trend higher here, do you think? >> you know, it appears to be, bill. the momentum here, i talked to
3:59 pm
traders, they're getting ready for next week. it will be a slow week. they're all pretty positive on the market. i think the dips that we saw the last two weeks are over. i think we're in an upward trend now, at least until the fed speak. >> huge decline in the yield on the 10-year today when that -- when the housing number came out today. is the march to 3% over, or is this just a blip? >> well, you know, i mean, one -- one housing number doesn't make a month. you know what? bad for main street, good for wall street, sure, this puts at least for today the fed's talk of tapering at bay right now for temporary time. so i think it's going to be a little -- a little coming down a little more, to be honest with you. >> are you accumulating here? >> right now, we're going to wait till monday, take another look at it. but we like what we see now, yes. >> and the data from china and the other -- that was pretty good this week. that kind of -- >> you know, you bring up a good point. the worldwide data yesterday from europe and china very positive. so we're very interested in it,
4:00 pm
yes. >> all right, allen, thank you. >> thanks, bill. zillion. >> we go out with a pretty good gain today, relatively speaking. and gold very strong and others. stay tuned. a lot to come in the second hour of the "closing bell." [ bell ringing ] coming up. and it's 4:00 p.m. on wall street. you're watching the "closing bell." i'm kelly evans in for maria bartiromo. she will be here, though, with part two of her exclusive interview with mike duke in just a moment. bill griffeth will join me momentarily, as well. the trading week coming to a close. it maybe the dead of august, but this was not a slow week by any standard. here's how we're finishing the day on wall street. the dow adding about 44 points or a third of one percent. similar gains for nasdaq, at 1,663. the nasdaq, bill, up half a percent. if you want to know why it's outperforming today, despite some of the stumbles this week, it has a lot to do with the perfnc


disc Borrow a DVD of this show
info Stream Only

Uploaded by TV Archive on